A change in the reserve requirement is the tool used least often by the Fed because it:
A. Does not affect bank reserves.
B. Can cause abrupt changes in the money supply.
C. Does not affect the money multiplier.
D. Has no impact on the lending capacity of the banking system.
B. Can cause abrupt changes in the money supply.
You might also like to view...
If the slope of a curve is 1/5, we know that
A) the relationship is linear, and the line moves from lower left to upper right. B) the relationship is non-linear, and the line moves from lower left to upper right. C) the relationship is linear, and the line moves from upper left to lower right. D) the relationship is non-linear, and the line moves from upper left to lower right.
At the Federal Reserve,
a. the nation's monetary and fiscal policies are made by the Federal Open Market Committee, which meets about every six weeks. b. the nation's monetary and fiscal policies are made by the Federal Open Market Committee, which meets twice a year. c. the nation's monetary policy is made by the Federal Open Market Committee, which meets about every six weeks. d. the nation's monetary policy is made by the Federal Open Market Committee, which meets twice a year.
If tablets have an absolute price elasticity of 1, the demand for tablets is
A. unit elastic. B. inelastic. C. perfectly elastic. D. elastic.
When migrant workers seek employment after the crops have been picked, the unemployment rate goes up. This situation is an example of
A. Structural unemployment. B. Seasonal unemployment. C. Frictional unemployment. D. Cyclical unemployment.